Single Tenant Wawa
Edison, NJ (New York City MSA)
The Opportunity
Summary
- Price: $6,700,000
- Cap Rate: 5.00%
- NOI: $335,000
- Lease Type: NNN Ground Lease
- Building Size: 4,736 SF
- Parcel Size: 1.99 Acres
- Year Built: 2021
- Remaining Lease Term: 17 Years
- Options: Six (6), Five (5) Year Options
- Rental Increases: 10% Every Five (5) Years
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to Wawa, (the “Property”) in Edison, New Jersey, a township just 25 miles southwest of New York City. Wawa operates on a NNN ground lease with 17 years of firm term remaining, allowing for a hands-off passive form of ownership. The lease features ten percent (10%) rental increases every five years, including in the option periods. Wawa sits at the corner of US-1, a major highway boasting 94,800 VPD and Stony Road. I-95 (NJ Turnpike) and I-287 are approximately 2 miles away from the property and boast 206,500 VPD and 170,400 VPD, respectively.
Edison is part of the New York City MSA, the largest in the country, that is home to a population of 19,617,900 people. The 5-mile area surrounding the property boasts excellent demographics with a population of over 295,000 people and 100,000 households. Also distinguishing the same area as affluent, the average household income sits at $130,000. Along US-1, Wawa is surrounded by some of the top performing retailers within their respective chains. Walmart ranks in the top 90th percentile within the United States. Sam’s Club is the top performing location in New Jersey and in the 86th percentile within their chain in the United States. Wendy’s ranks in the top 98th percentile in the United States (Placer.ai).
Wawa is one of the dominant gas station and convenience store tenants in the northeast and is quickly gaining more traction throughout the country. With over 1,000 locations, Wawa is the largest private company in Pennsylvania and 20th largest in the nation according to Forbes (2023). Wawa primarily has locations in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Florida, and Washington D.C. but have been quickly expanding in 2024 to states including Alabama, Georgia, Ohio, Kentucky, and North Carolina.
Investment Highlights:
Tenant
Wawa
Ownership: PRIVATE
Credit Rating: BBB (Fitch Shadow)
Headquarters: WAWA, PA
#of Locations: 1,000+
Wawa was founded in 1803 by Grahame Wood mainly as a dairy farm and it was not until 1964 that the company opened its convenience store/gas station chain and headquartered in Wawa, Pennsylvania. Wawa is a privately held company and in April of 2023 opened their 1,000th location as the company continues to expand. It is the largest private company in Pennsylvania and 20th largest in the nation according to Forbes (2023).
The company’s namesake is a Native American word for the Canada Goose in flight, which is seen in the company’s logo. A leader in the convenience store industry, Wawa is an everyday stop for fresh, built-to-order food, beverages, coffee, and fuel. They put an emphasis on the convenience aspect by providing self-serve coffee stations as well as touch screen food and beverage ordering. Most locations are open 24 hours a day, 365 days a year.
With many of their locations in New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Florida, and Washington D.C., Wawa is experiencing a massive expansion. In the past year or so, Wawa has opened locations in North Carolina, Georgia, and Alabama with their most recent expansion to Kentucky, Ohio, and Indiana. Forbes reports that Wawa has revenues of approximately $18.9 billion in their most recent fiscal year (2023), which outranks its Pennsylvania rival convenience store, Sheetz. Forbes also ranks Wawa at 12th on their Halo 100 list for 2022. The Halo 100 highlights excellence in delivering positive customer experiences throughout the country. Wawa also ranked 16th in Forbes Customer Experience – All Stars list for 2024. The Customer Experience All Star list is an annual index of the brands that leave consumers most satisfied with the product, service, and treatment of customers.
